Resource Planning

 

Resource planning

Once the preliminary production plan is established, it must be compared to the existing resources of the company. This step is called resource requirement or resource planning.

There were 2 questions must be answered.

1.       Are the resources available to meet the production plan?

2.       If not, how will the difference be reconciled?

If not enough capacity to meet the production plan cannot be made available, the plan must be changed. A tool often use is the resource bill.

If the firm planned to make 500 tables, 300 chairs, and 1500 stools in particular period, so they could calculate the quantity of wood and labor that will be needed. For example, the wood and labor that needed. For example, the amount of needed is:

Tables: 500 X 200 = 10,00 board feet Chairs: 300 X 0.85= 3000 board feet Stools: 1500 X 5= 7500 board feet Total wood required= 20,500 board feet

The amount of labor needed is:

Tables: 500 X 1.31= 655 standard hours Chairs: 300 X 0.85= 255 standard hours Stools: 1500 X 0.55= 825 standard hours Total labor requirement= 1735 standard hours

So now the company must now compare the requirements for wood and labor with the availability of these resources. For example, suppose the labor normally available in this period is 1600 hours. The priority requires 1735 hours so the difference of 135 hours, or about 8.4%. the company must select either extra capacity must be found or the priority plan must be adjusted. In this for example, it might possible to work overtime to provide the extra capacity requirement.

Table 0.1: Resource bill

Product	Wood ( board feet)	Labor ( standard hours)
Tables	201	0.31
Chairs	100	0.85
Stools	5	0.55